US markets dropped at the open, erasing yesterday’s gains after economic data surprised on the downside and rating agency Moody’s suggested it may cut Greece’s sovereign debt rating. The TSX is in positive territory on the back of the banks after CIBC and National Bank reported better than expected first-quarter income. Initial jobless claims in the US climbed by 22,000 last week, while orders for durable goods (excluding aircraft) unexpectedly slipped. TSX is up 12 pts.
The Dow is down 168 pts.
The Loonie fell more than a full penny this morning as debt concerns causes money to flow into US dollars. The C$ is down $1.11 to US$.9377. Bonds continue to climb on the economic data and after yesterday’s comments from Bernanke, pushing the 5-year Canada yield down to 2.50% and the 10-year to 3.41%. Oil is down $2.70 to US$77.30/barrel. Gold is up $2 to US$1099.20/oz.
